US Industry Welcomes Renewal of TPA

17 Apr 2015 --- The US food and drinks industry has welcomed the move to modernize and renew Trade Promotion Authority (TPA), which enables the US president to negotiate global trade agreements with input from Congress.

The National Milk Producers Federation (NMPF) and the US Dairy Export Council (USDEC) urged the Senate and House to act quickly on the legislation, saying the measure is crucial to securing well-negotiated trade agreements that open foreign markets to more US dairy products.

The Grocery Manufacturers Association (GMA), echoed the comments. In a statement, president and CEO Pamela G. Bailey said: “GMA welcomes the introduction today of bipartisan legislation to modernize and renew Trade Promotion Authority and urges Congress to pass it at the earliest opportunity.

“With the United States currently negotiating historic agreements in the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership, renewing TPA as soon as possible will help ensure these agreements enable American businesses and workers to compete on a level playing field in the global economy.

“GMA is a strong and consistent advocate of free trade between the United States and its trading partners around the world. Ambitious trade agreements will help open the door to new markets for US exports, boost US economic growth, and support well-paying US jobs.”

Meanwhile, Archer Daniels Midland Company (ADM), a leading ingredients company, also welcomed the move. In a statement, it said that ADM shares the belief that the legislation is essential as the US pursues a historic trade agenda that includes the Trans Pacific Partnership Agreement and the Transatlantic Trade and Investment Partnership. 

“Reducing barriers to trade will benefit ADM, American farmers, and our entire US economy,” said Patricia Woertz, chairman of ADM’s board of directors. “As a member of the President’s Export Council, and as chairman of a company that works to connect farmers to markets around the globe, I congratulate the sponsors of this legislation, and urge its swift passage.

“American farmers help feed the world,” Woertz continued. “The value of US agricultural exports in 2014 was $152.5 billion—up from $108.5 billion from only five years before. Our agriculture sector had a $43.3 billion trade surplus last year.  Exports represent a critical part of our agricultural economy.  And every day, ADM is helping American farmers connect to the global economy by shipping crops and finished products to markets around the globe.

“Trade is critical to our business and to American agriculture—and it’s critical to ADM’s purpose: to serve vital needs. The world’s need for food is growing and evolving as our global population rises and a new global middle class emerges. ADM is helping American farmers meet those needs, but to continue to do so, we need to make sure agricultural products continue to flow from here to markets around the world. We need fewer obstacles, fewer artificial barriers to trade. That is why we are pleased to see trade promotion authority legislation introduced, and hope for its swift passage.”

The bipartisan TPA legislation was introduced in the Senate by Senate Finance Committee Chairman Orrin Hatch (R-UT) and senior committee Democrat Sen. Ron Wyden (D-OR), and in the House by Ways and Means Committee Chairman Rep. Paul Ryan (R-WI).

NMPF and USDEC said renewing TPA, which expired in 2007, is particularly important to the US dairy industry because America now exports the equivalent of one-seventh of its milk production. TPA is the key to unlocking future export opportunities, the groups said.

“Because world trade has become a major driver of US dairy farmer income, we need well-designed free trade agreements to keep expanding our exports,” said NMPF President and CEO Jim Mulhern. “All of the past trade agreements that were well-negotiated have been beneficial to the US dairy industry. None of those have been implemented without Congress first approving trade negotiating authority.”

Added USDEC President Tom Suber: “Knowing that a trade agreement will be considered by Congress under trade promotion authority paves the way to press our negotiating partners to make their best offers on the most sensitive issues. Clearly, dairy exports fall into that category and the U.S. needs all the tools it can muster to get the best possible deal.”

The two organizations said TPA also allows US negotiators to prioritize negotiations about products that are subject to significantly higher tariffs in key foreign markets. “This is extremely important for our industry since foreign dairy tariffs are often extremely high,” said Mulhern.

Finally, NMPF and USDEC said TPA will increase congressional influence over trade negotiations and lead to agreements that are better for both the country and the dairy industry. “By having a framework for participating in the process and clearly identified priorities, Congress increases its influence over these agreements as they are being written,” said Suber.